Siemens slashes costs with automated purchase order processing

30 May 2002
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31 May 2002 | Robin Parker

Siemens' power generation division has saved up to 40 per cent in processing costs through collaboration with suppliers at its supply chain units.

Using a solution based on SAP and Commerce One platforms, the electronics and engineering giant aims to streamline activities with key manufacturing suppliers and expand its procurement and supply chain services across the organisation.

The power generation unit is the first of Siemens' divisions to use the solution, which enables the entire order-to-pay process of direct goods, which used to take three days, to be done in real time.

Buyers can place a purchase order in their SAP system and send it online to a supplier, which immediately responds with acknowledgements, advance shipment notices and invoices.

Suppliers can also check the status of their invoices and retrieve technical documents.

Siemens also claims it can process emergency orders within 24 hours.

The solution combines the mySAP Supply Chain Management system with Commerce One's Collaborative Platform, part of its recently launched 5.0 product suite.

It builds on Siemens' previous collaboration with Commerce One on its e-marketplace click2procure.


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